Crypto Market’s leading assets traded in the green on June 27, after going through major downdrafts. Bitcoin, XRP, Cardano, Doge, and the like have recovered after months of downturn. Dogecoin and Solana in particular have regained over 20% in the weekly index.
Bitcoin’s price too rebounded 20% since crashing to a low of under $18,000 last week.
But a recent report of Wall Street giant Goldman Sachs looking to raise $2 billion to buy up distressed assets of beleaguered crypto lender Celsius has generated quite an attention.
Anonymous sources familiar with the matter said if the proposed deal goes ahead, investors would be able to buy Celsius’ assets at potentially steep discounts in the event of a bankruptcy.
The move comes after Goldman’s recent bullish push into crypto, including establishing its own trading desks and gauging interest from institutional investors in lending products.
For those new to the market, Celsius was on the brink of insolvency after suspending user withdrawals from the platform earlier this month, citing “extreme market conditions”. This in turn accelerated a price crash that sent bitcoin spiraling under $20,000.
According to a Forbes report, Goldman Sachs’ reported deal for Celsius’ crypto assets is likely to infuse some degree of confidence into crypto traders who were left rattled by the mega sell-offs.
Recently. digital assets exchange FTX was reportedly in talks to acquire a stake in BlockFi after the trading platform extended a $250 million credit to the lending firm.
Crypto Bailouts To Embattled Projects
According to a report from the Wall Street Journal, FTX is currently in talks with BlockFi regarding purchasing a stake in the firm, but so far no equity agreement has been finalized.
FTX founder and CEO Sam Bankman-Fried a.k.a SBF, has provided a helping hand to many crypto projects amid a bear market that forced many firms to cut down staff.
However, it’s not clear if FTX’s reported intent to buy a stake in BlockFi was linked to financial difficulties at the crypto lending firm amid a bear market.
On 22nd June, Trading firm Alameda Research, under SBF’s management, announced it had provided loans worth 15,000 Bitcoin [BTC] to Voyager Digital which is seeking to cover losses from its exposure to Three Arrows Capital [3AC].